It was smaller lenders who tweaked their home loan rates, most heading north although not by large margins.
On Tuesday, the Reserve Bank of Australia released the minutes of its May board meeting revealing it had considered raising the cash rate but decided the case for keeping it on hold was stronger.
ANZ noted the "hawkish tinge" to the minutes that wasn't as evident in governor Michele Bullock's post-meeting media conference on 7 May.
Some commentators suggested it may have been designed to again remind the punters that any silly spending might drive up inflation and keep rates on hold for longer.
The RBA has been monotonous in telling us it needs inflation at its 2-3% target range before it will consider a drop to the cash rate.
But home lenders are always doing their own thing in the interim.
Let's check the action on the mortgage market this week.
Horizon Bank drops variable, lifts fixed rates
The bank springing from the south coast of New South Wales has chopped 10 basis points from its Home Sweet Home Discount Variable principal and interest (P&I) and interest only (IO) loans for owner occupiers and investors.
It takes Horizon Bank's variable rate for an owner occupier P&I loan with loan-to-value ratio (LVR) ≤70% under the 6% mark.
Here are the new rates for Home Sweet Home owner occupier loans:
| Product | Change (%) | New rate | Comparison rate* |
| Home Sweet Home Discount Variable P&I LVR ≤70% | -0.10 | 5.99% p.a. | 6.61% p.a. |
| Home Sweet Home Discount Variable P&I LVR >70% | -0.10 | 6.14% p.a. | 6.67% p.a. |
|
Home Sweet Home Discount Variable IO LVR ≤70% |
-0.10 | 6.19% p.a. | 6.80% p.a. |
| Home Sweet Home Discount Variable IO LVR >70% | -0.10 | 6.34% p.a. | 6.95% p.a. |
Bank of Sydney edges basic home loans higher
The Australian subsidiary of the Bank of Beirut adjusted its rates on Monday, adding five basis points to its BOS Basic Home Loan P&I products while cutting its Basic Investment IO loans by 10 basis points.
Despite that, Bank of Sydney's Basic Home Loan rates remain at the competitive end of the market.
| Product | Change (%) | New rate | Comparison rate* |
| BOS Basic Home Loan P&I ≤50% | +0.05 | 6.14% p.a. | 6.18% p.a. |
| BOS Basic Home Loan P&I 50-60% | +0.05 | 6.14% p.a. | 6.18% p.a. |
| BOS Basic Home Loan P&I 60-70% | +0.05 | 6.14% p.a. | 6.18% p.a. |
| BOS Basic Home Loan P&I >70% | +0.05 | 6.14% p.a. | 6.18% p.a. |
Some of Bank of Sydney's Expect More owner occupier Home Loans with offset and redraw facilities also took a 15-basis point hike.
Beyond Bank drops fixed rates
The mutual bank has defied the trend of recent weeks by dropping a range of its fixed rate home loans while most lenders have been going the other way with fixed rates.
Beyond Bank has cut Residential and Investment fixed rates across P&I and IO loans.
Its Total Home Loan Residential loan package for loan-to-value ratio ≤80% is now 6.19% p.a. fixed for one and two years (7.96% comparison rate* - one year; 7.80% p.a. comparison rate* - two years).
Newcastle Permanent hikes 5 bp
The customer-owned institution added five basis points to the rates across a range of its Residential and Investment Premium Plus Package Variable and Real Deal products.
Its best new rate after the rise is 6.14% p.a. (6.48% p.a. comparison rate*) on its Premium Plus Package Variable P&I deal for LVR <80% Special Offer for loan amounts of $150,000 or more.
Big jump for Queensland Country fixed rates
There was no mucking around with fixed rates at Queensland Country Bank this week with a swag of its owner occupier and investor loans rising 30 basis points across the board.
The increase was levied on its fixed rate and fixed Package P&I and IO loans for terms up to three years.
Advertisement
Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.04% p.a. | 6.06% p.a. | $3,011 | Principal & Interest | Variable | $0 | $530 | 90% | 4.6 Star Customer Ratings |
| Promoted | Disclosure | |||||||||
5.99% p.a. | 5.90% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 80% | Apply in minutes |
| Promoted | Disclosure | |||||||||
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% |
| Promoted | Disclosure | ||||||||||
5.69% p.a. | 6.16% p.a. | $2,899 | Principal & Interest | Fixed | $0 | $530 | 90% |
| Promoted | Disclosure |
Image by Filter Grade on Unsplash
Ready, Set, Buy!
Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!
With bonus Q&A sheet and Crossword!
